If you were the director of new-product development for a national fast-food chain, what factors would you consider in choosing

Answer:

1. Here are the factors I would consider:

• Whether the city has my intended market

• If the consumer purchasing behaviors in the area reflect the broader market trends

• Whether advertising costs are manageable.

• If it is not overly exposed to attract competitor attention.

• If demographic variables such as age and ethnicity align with my product.

2. The place I reside is not an ideal test market for this product; it is rural.

Explanation:

Test marketing serves as a tool in new product development aimed at gauging consumer responses to a new entry. It is particularly effective for fast-moving goods.

In choosing a city, I would verify that:

• The city has my target demographic. It's crucial because testing a product in an area where interest is absent wastes resources.

• The purchasing trends of consumers in that area should reflect realistic market expectations.

• Advertising and media expenses should be kept low to optimize resource allocation during test marketing.

• The region shouldn’t attract unwanted attention from competitors who may seize the idea.

• Demographics such as age, gender, and ethnicity should be suitable for the product.

2. Living in a rural area is unfavorable for test marketing because;

• People in urban areas tend to consume fast foods like sandwiches, as they have busy lifestyles. Rural residents generally prefer homemade meals. Therefore, this area is unsuitable for testing because my target consumers are not present.

• Moreover, the prevalent age group in this area skews older, with women who are typically less inclined toward fast foods. This indicates that the demographic is not ideal.